Building a company and we have a lot to do in 2014. 2013 was great. There are still a lot of businesses out there that need things for everything they do every day. That is the theme of the week. We have one company doing that. Tmobile will buy some spectrum. 700 megahertz spectrum licenses. Everybody wants those. 2. 4 billion shows how important it is to have the space. Dead a whilet for ago. Jpmorgan, they will pay a 2. Illion fine on charges jpmorgan made off, people inside made off. Why they are picking on jpmorgan 20 billion . Two mortgages to the london wales story. You would not agree to pay it a must there is something going on. Todays the first day of the real trading day of the year. Stock futures are higher and lower in china. Fivemonth low. Appointing manufacturing data is raising old fears of a slowdown in china once again. Sells skiing and broke her pelvis and canceled everything for the next three weeks. I am not sure how that happens. Downhill skiing, i am with you. Think about the market this year and what people have are you going to repeat and s p 30 return on the year. The mortgages did so well last year, many took money out of mortgages. So what will happen this year . After a year like that you do not repeat that. The guys as strategic research, he went back and since 1950, they look at all the years when there 25 and you typically get a return on average the following year of 11. 5 . It will not be 30 but it is an up year. Only about 11 when the year market was up here it only 16 hedge funds outperformed the s p. They have a lot to do this year. Maybe they make it up with some of the deals. Talk deals we have got to about this morning. Liberty media. We effectively learned friday it is making a bid for the portion of serious xm satellite it does not already own. That was friday. It looks like they may be using some of their other cash to put together a pit a bid. Owns about 27 of charter, which may now make a bid for cable. There is also a headline for making a bid for a dutch cable provider. Johnl of this is classic moe on. The ultimate dealmaker out there. Not necessarily about these three companies. Track record. S he acquires businesses and gets the cash flow. He is able to really move he can take time warner. Think about what that could do for Charter Communications and their subscribers. Many have said he is the best ceo in this space. Who knows what he can do. I am curious why they need to do this, why they need to flow positioncash so much they can help charter by Time Warner Cable. By kim a not just finance it . Madonna, the only thing better than more is all. That song is from the dick tracy movie. That is a madonna restaurants like nobodys business. I will talk about another fallen kin kingpin. Here we are back in the news. The insider trader trial begins. Steinbergw michael found guilty. We had six people that have pled guilty. What does this mean for steve cohen . Some people have said this is the kingpin. It was said if they have not gotten him yet, they will not. , when did all the sap and . In the summer of 2008, when the heat was on. Many people think this will be the linchpin. He supposedly had a conversation. People were desperate. People new markets were going down. What is fascinating is when you look at what bill was writing today. They look at the deposition steve gave and he said he did not really know what Insider Trading was and he was not familiar with the law. Cbs will have a documentary on that tonight. The fact that steve could say it was unclear what Insider Trading is, john, you run a public trading company. You reallyto assume need to understand the letter of the law in a different way than when you had a private business . Things get more complicated. It gives you a better position. There are pros and cons. In general, you just have to be careful about what you say and when you say it. And what is released publicly. Whether we are talking about jamie dimon who have to accept accountability for everything that happens in the company or steve cohen, anything that happens inside your company, you have to sign off on that. Yes. We have more responsibility. No doubt. We hire amazing people that have done this before to look after every step we do. Multiple levels of people watching everything we do. How do you find the smartest people out there . It is hard. You meet a lot of people and try out a lot of people. You have to take your time with hiring. You have to make a decision really quickly and move on. Does that mean you have a high turnover rate . We do not. It is pretty low. That is because we are really picky from the start. A companyt set forever. People are good at different things. Sometimes, they move on to other jobs. Is to looking to do at someones qualities and figure out what they are best at. Sometimes, moving them to a different spot within a company. Tell us about your company. How did you do it . I look at so many people going through an ibm training program, investment bankers, that is the opposite of what you do. Yes. I started doing everything myself 10 years ago. I am a programmer. I became a photographer because i had to. A Customer Service rep at my own company because i had to. I did every single job from the beginning because i had to. That is how you build a great company. Explain what it does. Video,ne can sell imagery, and we sell those images and videos commercially released. Are like an itunes for artists and people producing images. Just. Like the business version of itunes for imagery. How are you different from other imaging firms out there . Lets the firms have been around for a long time. They do similar things. But we started as an alldigital frictionless marketplace. The idea being you can come in and grab whatever images you market, whenever you needed them. It had not been done in this exactly before. We start out with a crowd where therketplace library is organically build wide demand. Buyers come in and download whatever they want. The data on what they are downloading is communicated to our contributors who go out and shoot more. In other words, you find in the past month, you have gotten 473 requests for pictures of palm trees, so you go to all of needartist and say, we more palm trees. It happens automatically. Inservators see the data their account as they sell stuff and they make money and that is a motivating factor for them to go out and shoot more. Image . Per yes about 30 of all of our revenue is paid to our conservators. Comes out to a few dollars for a 10. You shot a lot of images to begin with to get this started. Is most of what you sell ittributed i outsiders now . Is a marketplace. Yes. 40,000 contributors. We get about 30,000 images contributed to us everything will day. We process every single one by can so the marketplace react the way we wanted to. He started as a programmer. Did you have to become a salesman . The product sold itself over the web a bit here and i became a web marketer because i had to. We call that growth hacking. Betweencombination being a product and a marketing person. Every time you make a change to the product, it is a marketing effect happening. Run experiments. The product that you have, people like. We have got to talk about cold. You must have whether stock shots in there. They are calling it the polar pig. Chicago posses high today will be 10. To eight we will get in new york. Has an thing is, this enormous effect on commodities markets. Natural gas prices are way up. Wheat prices are rising. Electricity demand is enormous. Electricitying up prices. Companies all over the country are having to face higher costs. It would be interesting to see how they integrate that. If youre going anywhere, you are not going anywhere. 3000 flights are canceled. Julianna goldman was on the phone with united. Guess how long yesterday. She was trying to get home from colorado. 12 hours. It did not take 12 hours to get home. It took 12 hours for united to answer her call. How about the guys playing football in green bay . Pig about the nfl and the effect it had this weekend. We are constantly talking about the Home Experience and who is going to the ultra stadiums. Look at the stadium they build out in San Francisco. Did you think at any point, i want to get that game . Not at all. Round. Grass is talk about this weekend. We all watched football all weekend long. It on a tablet and we are tweeting each other. When you were a kid watching these games, did you want to be there . Yes. Today, we consume media in completely different ways. Start to figure out how people are viewing this stuff and what they will use, whether it is instagram and twitter or how they will communicate with each other. A lot of people sitting in the stadiums today are not watching the game half the time. Half time it trumpeted me walking down lexington avenue on mobile phones. We will have to figure out how we will make money this year. That is what we will talk about when we come back. A lot of commodities are up and it is about to get cold. We will be right back. The senate will vote this afternoon. Peoplespired 1. 3 million it hurts the economy and hurt them. Democrats say it will help the economy if it if it passes. Cannot get anywhere without politics in washington. Here is Chuck Schumer yesterday. Class the Republican Party says they will not even was started round by george bush when unemployment was 5. 6 . They will show themselves so far out of the mainstream, it will hurt them in the election. John is the ceo and founder peter cook is joining us. Back from vermont. You had furnace problems when you got home. We are hoping you are warm here at the office. 20 below in vermont but no furnace here in bc. D. C. Care if theyts have the votes to get this through . Politically, they feel like winners both ways. If it passes, they can get credit and if it does not pass, they can blame the republicans. Republicanseed five to join them. They only have one. Is aeal reason there holdup is republicans feel this could be extended if it is offset with something. Rand paul responding to Chuck Schumer. I am not opposed to unemployment insurance. I am opposed to having it without paying for it. It is wrong to borrow money from china were to print up money for it. I am not against having unemployment insurance. The question is, how do you pay for it . Republicans also talking about politics and focused on obamacare. There will be another vote in the house on obamacare. Are there any obvious offsets . Were not talking about huge amount of money. 6. 5 billion for a three month extension of the benefits. About 25 billion for a full year extension. There are not a lot of obvious offsets. They picked a a lot of low hanging fruit in the budget deal last month. Some people are talking about maybe tying it into the farm bill. Subsidies are being done away with. That could help pay for it. It looks likely they will get some sort of deal but they have got to find the money somewhere. Have got to tap that in d. C. And finding it is the challenge at this point. John, an interesting debate at the conference in philadelphia over the weekend between Larry Summers and john taylor. They agreed the economy is getting better. Sommers said the government needs to do more. John taylor seven problem with the economy is that the government has done too much. Do yousinessman, where fall . There needs to be a good balance. I would like to see more encouraging entrepreneurship and engineers. We do not have enough engineers in this country. We are not building the pipeline. Starting younger, teaching kids how to code. In other words, not teaching them spanish or french, but how to code. Theany people think it is most important language out there right now. Every kid is playing with computers and taking these things apart and writing their own code. We need to formalize that or get more people doing it . Formalize it. It and get introduced to ,ind your own way through it and i started coding as a kid at 10 or 11. Why did you start it . It was not in vogue yet. I wanted to rebuild donkey kong. I was interested in the mechanics of how it work and i was fortunate to have people around me who encouraged that an equipment around me that i could play around. Then i would go to school and i was learning latin and spanish. It did not make sense. We need to teach kids these languages. To teach kids how to code and you need to find people who can cold code. Where do you go . We have been opening more offices to find them. Andof our staff our product tech engineers. 130 right now. We opened an office in berlin. Talent. Specialized San Francisco as well. Are germans ahead of us . Is a lot of them innovation happening in berlin. A ton of startups in berlin and germany. Why did you start your business in new york . Not think of the financial district and that is where you are. Yes. I went to school here and grew up here. It was natural for me to stay here. We were able to find a lot of diversity. Support 20 different languages on our website today. We wanted to start internationalizing, finding to translatepeople the website in new york. You would not say you would just do it. New jersey. You do not speak jersey. I do not right now. Useverybody who works for from new jersey has got you on their lists. When we come back, were talking about tech billionaires. We will talk facebook and twitter and a whole lot more. Maybe he will be snap chatting during the break. I am adam johnson. Liu will be joining us at the top of the hour. It is 26 minutes after the hour and we are checking the markets. You have got to look at the uterus because his is the first monday, the first full week of the year. We have got green on the screen. Futures are up three points. We are down for the year. Sacrilegious. We are three days in. It is the first week. , 85 ofthe first week the time, the year is up. The other 15 are years better midterm election. No looking at these numbers, just trying to predict what position, he said you should not have hoped. Hope is a four letter word. Indeed but one company not about hope but about the real has been on ack tear. A lot of people talk about facebook and twitter, but look at this thing. 200 28 year to date. Digital images. You could download them. It is inexpensive. We are joined by the founder and ceo. It is awesome you created this company out of scratch because nobody else was doing it. You have got to run a company and now you are a public company. How much time do you spend worried about stock prices and analyst and wall street and all this stuff our viewers typically are focused on . I spend 20 of my time on investor conferences and dealing with our quarterly calls, certain investors, and it actually has been having a positive effect on how we run the business and how things are going. Because you are more accountable . We are more accountable. Andave had investors before i am accountable myself also. It has helped us formulaes and communicate. Formulate and communicate our message to our employees and to the world what were doing and what we stand for. Were are always trying to push the limits of where we are and thinking about shutter stock as a platform where we are a marketplace and a technology company. Could we sell other digital things . That is what led to footage. We sold stock video today. One of the largest stock market places and some of the largest producers. It is almost a different kind of tech how pinnie from a facebook or twitter. You are responding to customer demand and not creating something customers have not had before and teaching ms is this is what they want. We are selling a business product to businesses. You do not come to shutter stock to buy images and put them on your home screen and mobile device. You are buying images from us to sell your product or service. We have built the business from the beginning. Give an example. One of your best customers comes images over and over. How are they using them . X we have multiple clients. They are small and work by themselves. They may be in their own house or a small and shared cubicle. They may be doing menus for the local restaurant for interior design mocking up for the local coffee shop or Small Businesses starting to it all the way up to the largest publishers. Us world had buying from and having subaccounts. And our servicing some of the biggest brands in the world. Are images more in demand now . When you think about what consumers want, it is amazing. You look from 2000 until today, newspapers have half the staff they used to. Post sold at a garage sale price. Is it because images are the greatest value today echo we need images to sell things. People are using more and more images to sell things. Before i started this company, it was not likely you would use 10 different images and try out a a campaign in 10 different ways. If youre trying to reach and sell them something, you may try 10 different images and segue your list to 10,000 people. Youre customizing, in other words. Your testing. Will we get. This year . I want to talk to less and less people on facebook because if i do and not get one more cute picture of a cute kid, i am desensitized to it. You need images to sell things. Not enough beer for womens pictures to look at. To sellan use text things and people have done that. I learned first hand before i started shutter stock that if you include an image in your marketing material, it works better. Or powerful. Have you failed at anything with shutter stock . We fail all the time. We are a testing culture. And try things appeared we are not always right. We are not always predicting what will be right. What is something you tried that did not work . We are testing a few different homepages. We have tested it in colors. I do not know what that is. Tothe purchase button next an image. The color of it yet let me tell you something. Pair of shoes, it does not matter what color the button is. You do not know how much testing theyre doing. They are trying to figure out what drives more sales and trying to get you to come back quicker. Good to have your perspective. That is the founder of shutter stock. Lets really talk tech. The tech gabbert gadget trade show is coming up here he will talk about that when we come back here. Breaking news on pandora. It is announcing its december listener hour. Listener hours up 13 in the month of december for a total of one point ive 8 billion. Its market share is went up a little bit. One thats only listeners in cars can hear. ,ompanies like bp and paco bell state farm, all of them signing and 32nd spots. Backfield. Technology, technology. Jeff and time to kick off the Consumer Electronics show in las vegas. 1. 06 billion. That is what is predicted by the Consumer Electronics association. Smaller. Ut one percent estimated at 1. 0 7 trillion. What is behind the slon of spending. An estimated 200 97. John, you are here with us on set. You are not out in las